According to Miller and Modigliani 1, if UHT plc is financed entirely by equity and...
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Accounting
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According to Miller and Modigliani 1, if UHT plc is financed entirely by equity and has a cost of equity of 15%, which of the following will be nearest to the companys cost of equity if it replaces 30% of its equity finance with 6% loan stock issued at par?
A. 15.0%
B. 10.5%
C. 21.5%
D. 18.9%
E. 23.7%
According to Miller and Modigliani 1, if UHT plc is financed entirely by equity and has a cost of equity of 15%, which of the following will be nearest to the companys cost of equity if it replaces 30% of its equity finance with 6% loan stock issued at par?
| A. | 15.0% | |
| B. | 10.5% | |
| C. | 21.5% | |
| D. | 18.9% | |
| E. | 23.7% |
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